Category Archive: Finance, No picture
Fed Rate Hikes – 3 More Expected By December 2019
Fed Rate Hikes – Mixed Action On Friday Before delving into Fed rate hikes, let’s review Friday’s market action. With all the volatility in the past few weeks, it appears investors aren’t focused on the midterm elections. At worst, I think the election won’t affect stocks. At best, it will inspire a big rally. Stocks […]
Wizard’s First Rule
Terry Goodkind wrote an epic fantasy series. The first book in the series is entitled Wizard’s First Rule. We recommend the book highly if you’re into that sort of thing. However, for purposes of this essay, the important part is the rule itself: “Wizard’s First Rule: people are stupid.” “People are stupid; given proper motivation, almost […]
Elliott Wave Analysis: Crypto Update
On the 4h chart, Bitcoin bounced sharply higher, but we assume it’s still a part of a correction, so we would not fall in love with bulls just yet, while price keeps trading below 7400 level. That said, we should be aware of more complex and sideways price action within a bearish triangle or within […]
Market Valuation, Inflation And Treasury Yields: Clues From The Past – Monday, Nov. 5
Note: The charts in this commentary have been updated to include the latest monthly data. Our monthly market valuation updates have long had the same conclusion: US stock indexes are significantly overvalued, which suggests cautious expectations on investment returns. In a “normal” market environment — one with conventional business cycles, Federal Reserve policy, interest rates and inflation — […]
Oil Prices Risk Larger Rebound As RSI Recovers From Oversold Territory
OIL TALKING POINTS Crude appears to be catching a bid as the United States restores sanctions on Iran, and recent price action raises the risk for a larger rebound as the Relative Strength Index (RSI) appears to be bouncing back from oversold territory. OIL PRICES RISK LARGER REBOUND AS RSI RECOVERS FROM OVERSOLD TERRITORY In […]
E S&P 500 Stopping For A Correction
S&P500 is reversing higher in a very strong and impulsive manner from the lows, so it appears that wave 4 can be deeper and more complex as we see current rise still as wave A) that belongs to a three-wave recovery so more upside should be coming after wave B) pullback. Short-term support is at […]
Market Remains Overvalued – Monday, Nov. 5
To facilitate comparisons, we’ve adjusted the two P/E ratios and Q Ratio to their arithmetic means and the inflation-adjusted S&P Composite to its exponential regression. Thus the percentages on the vertical axis show the over/undervaluation as a percent above mean value, which we’re using as a surrogate for fair value. Based on the latest S&P […]
GE – “Bringing Investment Mistakes To Life”
Last week, General Electric (GE) did something that many never thought would happen. They slashed their dividend to just $0.01 per share. We are talking about GE. A company which has been bringing “good things to life” for well over 100-years. There is an important lesson to be learned here by investors who have long bought into […]
EUR/USD Holding Its Breath Ahead Of The Mid-Terms, Brexit Developments
The EUR/USD kicks off the week around 1.1400, looking for a new direction. Trade uncertainty and tension towards the Mid-Term Elections keep things tight. The technical picture is slightly bullish for the pair. The EUR/USD is trading in a narrow range in the wake of the week, quite different from the action it experienced last week. The […]
USDCAD Daily Analysis – Monday, Nov. 5
USDCAD failed to break below the bullish trend line on the 4-hour chart, suggesting that the pair remains in the uptrend from 1.2782. Another rise could be expected and next target would be at 1.3250 area. Key support is at 1.2969, only a breakdown below this level could signal completion of the uptrend.
